Investors shift focus to specific economic zones
Investors shift focus to specific economic zones
Private sector investment in the 10 special and specific economic zones (SEZ) in Laos has reached about US$949 million, according to the Lao National Committee for Special Economic Zone (NCSEZ) Secretariat.
The figure reflects the growing interest of foreign investors in shifting their business and production base to SEZs in Laos to benefit from tax incentives and cheap labour.
Deputy Director General of the Secretariat, Dr Kheungkham Keonouchanh, presented a report at a meeting in Vientiane yesterday to highlight the achievements and challenges as well as the lessons learned regarding SEZ development in Laos.
Officials from various provinces attended the meeting which was chaired by Deputy Minister and Vice President of the NCSEZ, Ms Bouatha Khattiya.
Laos introduced SEZs in 2000, but initially faced a lot of challenges due to a lack of clear policy and guidance in the sector.
However, a milestone in SEZ development took place in 2010 when the government established the Lao National Committee for Special Economic Zones.
Now the 10 zones cover an area of more than 13,500 hectares and have generated over 6,700 jobs for local people, which is helping to alleviate poverty.
But Dr Kheungkham said these zones still need to hire more Lao labourers, particularly the Savan-Seno special economic zone in Savannakhet province.
One of the challenges for SEZ development is compensating villagers whose land is affected by development projects. In some cases, households have refused to accept the compensation offered by the authorities, which has led to delays in setting up some SEZ projects.
At yesterday's meeting, officials discussed a number of issues including the role of the NCSEZ and provincial authorities.
The ou tcome of the meeting will be reported to higher authorities at another meeting to be held in Vi entiane today.
The government is well aware of the significance of attracting foreign investment to drive the country's economic growth, which is crucial to lift people above the poverty line and enable Laos to graduate from the list of least developed countries by 2020.
SEZs help to promote infrastructure development, services, productivity, skill development and the transfer of modern technology.
More investors are shifting their focus to SEZs in Laos after the Malaysian investor Giant Consolidated Limited announced at the ASEM Summit in Vientiane last year that it will build a US$5 billion high-speed railway linking Savannakhet to the Vietnamese border (Savan-Laobao rail).
Japanese multinational corporations Nikon and Toyota recently decided to build factories in the Savan-Seno special economic zone as Laos becomes more closely integrated with the region and the world.
Existing SEZs in Laos include the That Luang Marsh specific economic zone in Vientiane, Savan-Seno special economic zone in Savannakhet province, Golden Triangle special economic zone in Bokeo province, Boten Dankham specific economic zone in Luang Namtha province, Vientiane Long Thanh Golf Course in Vientiane, and the Phoukhiew specific economic zone in Khammuan province.
vientiane times
